You are multiplying several challanges for an overall much higher risk profile. 

Just be aware it increases personal risk, so ensure your cash flow and reserves can handle any gaps.

If your client signed it, it carries weight.

Assuming your HELOC is against your personal residence, you risk losing your family’s house.

Suing the agent or broker, that may or may not even have enough net worth to carry on a lawsuit is also something to consider.. 

The Deal: • Single-Family Fix & Flip in the Midwest • Purchase Price: $250,000 • Rehab Budget: $50,000 • ARV: $375,000 The Funding Structure: • Loan Covered: 90% of purchase + 100% of rehab • Total Loan: $275,000 (capped at 75% of ARV) • Term: 12 months, interest-only payments • Closing Timeline: 10 business days Client Cash to Close: • 10% down on purchase = $25,000 • Closing costs + points ≈ $8,500 • Legal/Appraisal Fees ≈ $1,500 • Total ≈ $35,000 Out of Pocket Monthly Carry: • ~$2,520 interest-only payment (plus taxes/insurance) Exit Projection: • ARV: $375,000 • Loan Payoff: $275,000 • Selling Costs (~8%): $30,000 • Net Profit ≈ $55,000+ For this client, we made sure the financing aligned with their exit strategy so they could move quickly on the property and keep more capital free for future deals. 

A common model in larger operations is the "Promote/Carried Interest" model.

To see deals in real time around LA, plug into investor meetups and site visits: pick two groups this month, show up early, ask who’s walking rehabs this week, and offer to carry a clipboard and ask smart, brief questions.

When doing due diligence to create a healthy investment portfolio, every investor will do it differently because every investor has a different risk tolerance, comes from a different financial situation and has different financial goals.

Short-term rentals usually offer the highest upside but also carry more risk, especially around regulation.